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Item J-2 STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES Division of Boating and Ocean Recreation Honolulu, Hawaii 96819 June 28, 2019 Chairperson and Members Board of Land and Natural Resources State of Hawaii Honolulu, Hawaii Land Board Members: SUBJECT: RENEWAL OF 28 REVOCABLE PERMITS ON THE ISLANDS OF OAHU, MAUI, HAWAII AND KAUAI, SEE EXHIBIT E FOR LIST OF REVOCABLE PERMITS. AND DECLARE PROJECT EXEMPT FROM REQUIREMENTS OF CHAPTER 343, HRS AND TITLE 11, CHAPTER 200, HAWAII ADMINISTRATIVE RULES. HRS CHAPTER 343 – ENVIRONMENTAL ASSESSMENT: In accordance with the Exemption List for the Department of Land and Natural Resources, approved by the Environmental Council on June 5, 2015, the subject action is exempt from the preparation of an environmental assessment pursuant to Exemption Class 1, “Operations, repairs, or maintenance of existing structures, facilities, equipment, or topographical features, involving negligible or no expansion or change of use beyond that previously existing.” BACKGROUND: Since the last renewal of the revocable permits on May 25, 2018, the following permit has been cancelled: RP# Permittee Area TMK Monthly Rent Date Cancelled Use Remarks 5 GKM, Inc. 9 ac. (3) 7-4- 008:003 (por) $7,311.45 10/31/2018 Boat/trailer storage facility and employee parking. RP terminated following the sale of lease at public auction.

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  • Item J-2

    STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES

    Division of Boating and Ocean Recreation Honolulu, Hawaii 96819

    June 28, 2019

    Chairperson and Members Board of Land and Natural Resources State of Hawaii Honolulu, Hawaii Land Board Members:

    SUBJECT: RENEWAL OF 28 REVOCABLE PERMITS ON THE ISLANDS OF OAHU, MAUI, HAWAII AND KAUAI, SEE EXHIBIT E FOR LIST OF REVOCABLE PERMITS.

    AND DECLARE PROJECT EXEMPT FROM REQUIREMENTS OF

    CHAPTER 343, HRS AND TITLE 11, CHAPTER 200, HAWAII ADMINISTRATIVE RULES.

    HRS CHAPTER 343 – ENVIRONMENTAL ASSESSMENT: In accordance with the Exemption List for the Department of Land and Natural Resources, approved by the Environmental Council on June 5, 2015, the subject action is exempt from the preparation of an environmental assessment pursuant to Exemption Class 1, “Operations, repairs, or maintenance of existing structures, facilities, equipment, or topographical features, involving negligible or no expansion or change of use beyond that previously existing.” BACKGROUND: Since the last renewal of the revocable permits on May 25, 2018, the following permit has been cancelled: RP# Permittee Area TMK Monthly

    Rent Date

    Cancelled Use Remarks

    5 GKM, Inc.

    9 ac. (3) 7-4-008:003 (por)

    $7,311.45 10/31/2018 Boat/trailer storage facility and employee parking.

    RP terminated following the sale of lease at public auction.

  • BLNR – Renewal of Revocable Permits June 28, 2019 Item No. J-2

    2

    Staff is continuing its work to convert revocable permits to long term dispositions, where practicable. To this end, it has procured an appraisal for RP No. 47, issued to A&K Ventures, which the Board renewed earlier this year, and anticipates selling the lease at public auction by the end of the year. Staff has also identified numerous revocable permits which should be converted to long term dispositions. The following is staff’s timetable to convert these permits: Near Term (1-3 years)

    RP# Permittee Remarks 1 Cates Marine Services, LLC

    Exhibit A-2 Staff believes that a long-term lease is the appropriate disposition for this property and will shortly begin work to sell a lease at public auction

    3 Dolphin Excursions Exhibit A-3

    Staff believes that a long-term lease is the appropriate disposition for this property and will shortly begin work to sell a lease at public auction

    4 Dolphin Excursions Exhibit A-3

    Staff believes that a long-term lease is the appropriate disposition for this property and will shortly begin work to sell a lease at public auction

    17 Maalaea Boat & Fishing Club Exhibit B-3

    Staff believes that a long-term lease is the appropriate disposition for this property and will begin work shortly to sell a lease at public auction

    19 Maui Oil Company, Inc. Exhibit B-3

    Staff will begin work on a Diesel Fuel Concession for Maalaea SBH

    20 Maui Petroleum, Inc. Exhibit B-3

    Staff will begin work on a Fuel Concession for Maalaea SBH

    26 Pacific Biodiesel Logistics, LLC Exhibit B-3

    Staff will begin work on a Bio-Diesel Fuel Concession for Maalaea SBH

    28 Surf N’ Sea, Inc. Exhibit A-4

    Staff believes that a long-term lease is the appropriate disposition for this property and will shortly begin work to sell a lease at public auction

    30 Trilogy Corporation Exhibit B-5

    Staff is working with the permittee to convert the permit to a non-exclusive easement

    34 Diamond Parking Lahaina Exhibit B-4

    Staff is currently working on a parking concession for the LSBH

    50 Nawiliwili Yacht Club Exhibit D-1

    Staff is working to convert this revocable permit to directly negotiated lease with Kauai Sailing Association

  • BLNR – Renewal of Revocable Permits June 28, 2019 Item No. J-2

    3

    Medium Term (3-5 years)

    RP# Permittee Remarks 6 Hawaii Big Game Fishing Club

    Exhibit C-1 Staff believes that a long-term lease is the appropriate disposition for this property and will begin work within the next few years to sell a lease at public auction

    7 Hawaii Island Paddle Sports Assoc. Exhibit C-1

    Staff believes that a long-term lease is the appropriate disposition for this property and will begin work within the next few years to sell a lease at public auction

    8 Hawaii Petroleum Exhibit C-2, C-3 & C-4

    Staff will work within the next few years to convert this revocable permit to a concession

    12 Island Ice Company Exhibit B-2

    Staff will look at the possibility of converting this revocable permit to a license

    14 Keahole Point Fish, LLC Exhibit C-1

    Staff believes that a long-term lease is the appropriate disposition for this property and will begin work within the next few years to sell a lease at public auction

    15 The Kona Sailing Club Exhibit C-1

    Staff believes that a long-term lease is the appropriate disposition for this property and will begin work within the next few years to sell a lease at public auction

    25 Outfitters Kauai, Ltd. Exhibit D-1

    Staff believes that a long-term lease is the appropriate disposition for this property and will begin work within the next few years to sell a lease at public auction

    31 True Blue Exhibit D-1

    Staff believes that a long-term lease is the appropriate disposition for this property and will begin work within the next few years to sell a lease at public auction

    35 Horizons Pacific, Inc. Exhibit C-2

    The permittee is using a small space within a building location on the Kailua-Kona Pier.

    REMARKS: The list of the 28 revocable permits staff recommends be renewed for fiscal year 2020 is attached as Exhibit E. Included in the exhibit are the revocable permit number, permittee names, tax map keys, land trust status, original commencement date of the permit, character of use, land area, annual rent, method by which staff set the rent and the rationale behind the issuance of the permit. Location maps of the revocable permits are attached as Exhibits A, A-1 to 5, B, B-1 to 5, C, C-1 to 5, D, and D-1. The Division of Boating and Ocean Recreation procured a contract with Brian Goto and James Hallstrom of CBRE, Inc. (Appraiser) for appraisal services to assist in valuing the rent to charge for the use of State lands underlying 18 revocable permits statewide as of July 1, 2016.

  • BLNR – Renewal of Revocable Permits June 28, 2019 Item No. J-2

    4

    The Appraiser recommends a 2-3% increase per annum in the revocable permit rents, depending on the desirability of the premises. Previous submittals for the renewal of revocable permits did not include an increase in rents. With the exception of those permits issued to non-profits, staff is therefore recommending that the annual rental for the permits it seeks to renew in this submittal be increased by nine percent (9%), or three percent (3%) per annum since the issuance of the permit. The following State and County agencies were consulted on this action with the results indicated:

    Agency: Comment: Division of Aquatic Resources See Exhibit F - RP 17 has been contacted

    regarding potential illicit discharges and has been given notice to cure deficiencies.

    Office of Conservation and Coastal Lands See Exhibit G Division of Conservation and Resources Enforcement

    Did not respond by suspense date

    DOBOR-Oahu District No objections DOBOR-Maui District No objections DOBOR-Hawaii District No objections DOBOR-Kauai District No objections Land Division-Oahu, Hawaii No comments Office of Hawaiian Affairs Did not respond by suspense date CCH Department of Planning and Permitting No comments & no objections COM Planning Department Recommended minimal to no charge for the

    landscape easement COH Planning Department No comments COK Planning Department Did not respond by suspense date

    RECOMMENDATION: That the Board of Land and Natural Resources:

    1. Declare that, after considering the potential effects of the proposed disposition as provided by Chapter 343, HRS, and Chapter 11-200, Hawaii Administrative Rules, this project will probably have minimal or no significant effect on the environment and is therefore exempt from the preparation of an environmental assessment; and

    2. Approve the continuation of the revocable permits listed in Exhibit E on a month-to-month basis for another one-year period, from July 1, 2019, to June 30, 2020, except for permits that are in arrears of rental payment for more than 60 days and/or have been approved for forfeiture by a separate Board action. Permits in arrears of rental for 60 days or more and/or approved by the Board for forfeiture shall not be renewed; and

  • BLNR — Renewal of Revocable Permits June 28, 2019Item No. J-2

    approved for forfeiture by a separate Board action. Permits in arrears of rental for 60 daysor more and/or approved by the Board for forfeiture shall not be renewed; and

    3 . Delegate to the Chairperson the authority to adjust the rent for any revocable permit inaccordance with the rents listed in Exhibit E.

    Respectfully Submitted,

    EDWARD R. UNDERWOOD, AdministratorDivision of Boating & Ocean Recreation

    APPROVED FOR SUBMITTAL:

    /1 e

    SUZNE D. CASE, ChairpersonBoaixf of Land and Natural Resources

    Attachments:A. Oahu

    A-i Ala Wai SBHA-2 Ke’ehi SBHA-3 Waianae SBHA-4 Haleiwa SBHA-5 He’eia-Kea SBH

    B. Maui & LanaiB-i Mala WharfB-2 Kahului SBHB-3 Maalaea SBHB-4 Lahaina SBHB-5 Manele Bay

    C. HawaiiC-i Honokohau SBHC-2 Kailua BayC-3 Keauhou Bay SBHC-4 Kawaihae North SBHC-5 Kawaihae South SBH

    D. KauaiD-i Nawiliwili SBH

    E. List of Revocable PermitsF. Comments from DARG. Comments from OCCL

    5

  • June 28, 2019 J-2

    EXEMPTION NOTIFICATION Regarding the preparation of an environmental assessment pursuant to Chapter 343, HRS and Chapter 11-200, HAR Project Title: Renewal of 28 Revocable Permits (RPs) on the Islands of Oahu,

    Maui, Hawaii and Kauai, See Exhibit E for the list of RPs. Project / Reference No.: Project Location: See Exhibits A, B, C & D for locations and Exhibit E the list of

    28 RPs. Project Description: See Exhibit E for the list of RPs descriptions. Chap. 343 Trigger(s): Use of State Land Exemption Class No(s).: Exemption Class No. 1, Item No. 51 that states: "Permits,

    licenses, registrations, and rights-of-entry issued by the Department that are routine in nature, involving negligible impacts beyond that previously existing."

    Cumulative Impact of Planned Successive Actions in Same Place Significant?

    No, the requested locations have had the same use since the last renewal. Therefore, staff believes the use of the lands for the continuation of these revocable permits have no significant effect on the environment.

    Action May have Significant Impact on Particularly Sensitive Environment?

    No, staff does not believe the continuation of these RPs will have a significant impact on the respective environments.

    Analysis: The current permittees have used the locations for the same purposes since the last renewal. Staff believes that the requests would involve negligible or no expansion or change in use of the subject locations beyond that previously existing. DOBOR would also like to ensure there is a continuous uninterrupted presence on these sites in order to deter any unwanted activity that usually occurs on vacant lands.

    Consulted Parties: Agencies list in submittal Declaration The Board finds that these projects will probably have minimal or

    no significant effect on the environment and declares that these projects are exempt from the preparation of an environmental assessment.

  • Exhi

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    Exhibit A

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    Exhibit A-3

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    Exhibit A-4

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  • Exhi

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    Exhibit A-5

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  • Exhibit B-3

    Exhibit B-3

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    Maalaea Charters, Inc.

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    Maui Petroleum

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    Pacific Biodiesel Logistics, LLC RP 26 – Fuel Truck Dispensing

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    DI;I’ARIMENI OF I,ANI) SI) SAIIRAI, RESOURCESDI\lSlO OF AQI’TIC RESOURCES1151 ‘I (Nd 113( )WI Si RI: ET, ROOM 33(1

    hONOlULU, HAWAII 96813

    SUZANNE II. CASE11111

  • DAR# 5919

    Comments

    Out of the 28 revocable permits listed DAR has some concerns about Maalaea boat and fishingclub which is number 17 on the list. The concerns for that particular lease are listed below.The current haul out and boat dry dock operations is not being done with any real effort tomitigate environmental impacts. Bottom paint is often sanded and/or pressure washed off oitheboats and Rows directly into the harbor waters. Fiberglass work is conducted out in the openwith line Fiberglass powder blowing off of boats and into the ocean. If a long term lease isprovided to allow For this on-going dry dock use, it seems appropriate environmental controlsshould be put in place to prevent pollutants From entering the nearshore waters ofthe bay andharbor.

    One other concern raised was that DAR is currently using this space as temporary oflice spaceuntil their office in Wailuku is completed. It is unclear if the proposed action would impact thecurrent use or not.

    Exhibit F

    Exhibit F

  • DAVID V. ICECOVEIWDR OF

    HAWAII a,

    STATE OF HAWAIIDEPARTMENT OF LAND AND NATURAL RESOURCESOFFICE OF CONSERVATION AND COASTAL LANDS

    POST OFFICE BOX 621HONOLULU. 1-IAWAII 96809

    SUZANNE 0. CASECI ASIEJISSON

    WARD IS IAN) AN I NXIU)IAI, ISIS S SIC’SCIIMMI)S ()Nc)N WAlES ISI:SllllISCE MANACI:MIXC

    ROBERT K. MASIIDAPEST DUSTY

    M. KALEO MANUELDSPSRY OlIlITtISS — WA ISIS

    AQIIATIC RISUIJILLS50511)40 ME) SKEAN RECREATION

    155RPM) SE CDNvFYANCI:SCSSSWIIS)IUN UN WATER SESS)IWcr) MANASII:MINP

    CSINJLSVATION 4511 CO&STAI LANDSCSSNSI:RVATII IN AM) IWSOIIRCLS 1141SJSCEMENT

    ENOINURINO111513111? MI) WIIDIIESI SCSI DISC PRESLRVATION

    KMRXRASNI, ALAMO RESERVE CSIMMLSSSON[MI)

    STATE PARKS

    Correspondence: ST 19-175

    TO: Richard Howard, Property Manager MAY 1 32019Division of Boatina and Ocean Recreation

    r /7 (/t)çl 1U—FROM: $Samuel 3. Lemmo, Administrato? -&

    V Office of Conservation and Coaslal Lands

    The Office of Conservation and Coastal Lands (OCCL) has reviewed the list of RevocablePermits and note that we have permits for Harbor improvements at the indicated locations:

    Location Consen’ationDistrictUsePermit (CDUP) PurposeHonokohau, Hawai’i HA-1237 Harbor(3) 7-4-008:003 —Ala Wai. O’ahu OA-340; 927; 1097 Pier. Docks, Harbor Imp.(1) 2-3-037:012/026Kahalui. Maui MA-3 196; 3738 Harbor Imp.; Trailer Parking(2) 3-7-001:023Ma’alaea. Maui MA-695; 846 Harbor; Moorings(2) 3-6-001:002Manele. Lana’i LA-3257 Small Boat Harbor(2) 4-9-017:006He’eia, O’ahu OA-709; 1457 Docks4-6-006:069Nawiliwili, Kaua’i KA-414 Harbor(4) 3-2-003:007Wai’anae, O’ahu OA-875 Harbor

    (1) 8-5-002:044’

    The OCCL concurs the renewal of the revocable permits appear to be considered an exemptaction pursuant to Chapter 343, Hawaii Revised Statutes (HRS), as amended, and Chapter 11-200, HAR, Exemption Class I Operations, repairs or maintenance of existing structures,facilities, equipment, or topographical features, involving negligible or no expansion or change ofuse beyond that previously existing.

    Should you have any questions regarding this memorandum, contact Tiger Mills of our Office at(808) 587-0382.

    REF:OCCL:TM

    SUBJECT: Renewal of Revocable Permits for Small Boat Harbors and HRS, Chapter 343Concurrence

    Exhibit G

    Exhibit G

    6-28_J-2_Continuation of Revocable Permits.pdfJUNE.28.19-J2.pdf6-28_J-2_Continuation of Revocable Permits 343 Exemption.pdf6-28_J-2 Continuation of Revocable Permits Exhibits A, B, C & D.pdfContinuation of Revocable Permits Exhibit A (Oahu)Continuation of Revocable Permits Exhibit B Maui)Continuation of Revocable Permits Exhibit C (Hawaii)Continuation of Revocable Permits Exhibit D (Kauai)

    6-28_J-2_Continuation of Revocable Permits Exhibit E.pdfExhibit A

    6-28_J-2_Continuation of Revocable Permits Exhibit F.pdf6-28_J-2_Continuation of Revocable Permits Exhibit G.pdfBlank PageBlank Page